Current Attempt In Progress Tanek Corp's sales slumped badly in 2017. For the first time in its history. It operated at a loss. The company's income statement showed the following results from selling 585,500 units of product: sales $2,927,500, total costs and expenses $3,044,600, and net loss $117,100. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total Variable Fixed $2,505,940 $1,861,890 $644,050 292,750 107,732 185,018 245,910 7 9,628 166,282 $3,044,600 $2,049,250 $995,350 Management is considering the following independent alternatives for 2018, 1. Increase unit selling price 23% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $175,650 to total salaries of $70,260 plus a 5% commission on sales. (a) Compute the break-even point in dollars for 2017. (Round final answer to O decimal places, e.g. 1.225.) Break-even point $ (b) Compute the contribution margin under each of the alternative courses of action. (Round final answer to O decimal places, 28.1.225/ Contribution margin for alternative 1 Contribution margin for alternative 2 Contribution margin for alternative 2 aces, eg 5125 and other Compute the break-even point in dollars under each of the alternative courses of action (Round selling calculations to decimal places, s. 20% and also final answer to decimal places, s. 1225) Break-even point for alternative 1 $ Break-even point for alternative 2 $ Which course of action do you recommend? e Textbook and Media Attempts: 0 of 3 used Save for Submit Answer Send to Gradebook Previous